President Donald Trump has decided to exit the Paris Agreement, the set of voluntary emissions reductions to which all but two countries are signatories—a win for 22 Republican Senators and a small group of advisers and a disappointment to those who lobbied for remaining in the agreement, including executives of the biggest global corporations and energy majors, national security officials, many top White House officials, and many heads of state. The United States now joins Syria and Nicaragua as the only holdouts to the accord.

“To fulfill my solemn duty to protect America,” said Trump, “the United States will withdraw from the Paris climate accord.” He added, “But begin negotiations to reenter either the Paris accord or an entirely new transaction on terms that are fair to the United States . . . So we’re getting out but we’ll start to negotiate and we’ll see if we can make a deal that’s fair.”

Trump said he is keeping his campaign promise to “put American workers first” and claimed that the accord was poorly negotiated by the Obama administration. He offered no details about how he plans to disentangle the United States from the Paris Agreement (subscription).

The nonbinding Paris Agreement was designed to allow countries to tailor their climate plans to their domestic circumstances and to alter them as circumstances changed. But the hope was that peer pressure and diplomacy would lead to increased ambition and action to curb global-warming emissions. Nonetheless, Trump advisers like the chief strategist Stephen K. Bannon made the argument that staying in the Paris accord could entail a series of legal obligations—an argument rejected by some legal scholars.

European Commission President Jean Claude-Juncker said Trump doesn’t “comprehensively understand” the terms of the accord, though European leaders tried to explain the process for withdrawing to him “in clear, simple sentences” during summit meetings last week. “It looks like that attempt failed,” Juncker said. “This notion, ‘I am Trump, I am American, America first and I am getting out,’ that is not going to happen.” Juncker also warned that it would take years to extricate the United States from the Paris Agreement.

This week, an administration official laid out three ways the United States could leave the accord. First, Trump could announce he is pulling the United States from the deal, which would trigger a three-year withdrawal process that wouldn’t conclude until November 2020 under the deal’s terms—actual withdrawal would take perhaps another year. Second, Trump could declare that the Paris Agreement is actually a legal treaty that requires Senate approval, which it is unlikely to get. Third, Trump could withdraw the United States from the United Nations Framework Convention on Climate Change—the treaty that underpins the Paris Agreement. Although this process would take just one year, it would remove the United States from all global climate diplomacy.

Yesterday, as media outlets reported the likely decision by Trump on the Paris Agreement, came word of the first-ever bilateral agreement on climate change (subscription) between the European Union (EU) and China. According to a statement being prepared before an EU-China summit in Brussels starting today, members of the new alliance will say they are determined to “lead the energy transition” toward a low-carbon economy. The new pact calls for the EU to support the rollout of China’s national emissions trading system, likely hastening linkage of that system with the EU carbon market, the world’s largest. It also calls for the two partners to help poor countries develop green economies. A draft called the Paris Agreement an “historic achievement” and “proof that with shared political will and mutual trust, multilateralism can succeed in building fair and effective solutions to the most critical global problems of our time.”

The new pact may help to fill the void left by China’s former partnership with the Obama administration, a partnership instrumental in persuading nearly 200 countries to support the Paris Agreement in 2015.

Economists Say Carbon Tax Is Needed to Avert Climate Catastrophe

On Monday, 13 leading economists, including Nobel laureate Joseph Stiglitz and former World Bank chief economist Nicholas Stern, said carbon dioxide should be taxed at $40 to $80 per metric ton by 2020 and at as much as $100 per metric ton by 2030 to stop catastrophic global warming. The idea is to give businesses and governments an incentive to lower emissions even when fossil fuels are cheap—an idea rejected by the Trump administration and embraced by the world’s largest emissions trading coalition, the European Union, albeit at a carbon price—$6.70 per ton—well below that recommended by the report released by the High-Level Commission on Carbon Prices.

The report, which is backed by the World Bank and the International Monetary Fund, concluded that a “well-designed” carbon price is an “indispensable” element of any strategy to reduce carbon emissions while maintaining economic growth.

“The world’s transition to a low-carbon and climate-resilient economy is the story of growth for this century,” Stiglitz and Stern said in a joint statement. “We’re already seeing the potential that this transformation represents in terms of more innovation, greater resilience, more livable cities, improved air quality and better health. Our report builds on the growing understanding of the opportunities for carbon pricing, together with other policies, to drive the sustainable growth and poverty reduction which can deliver on the Paris Agreement and the Sustainable Development Goals.”

Among the report’s findings: Meeting objectives set out in the Paris Agreement will require all countries to implement policies that complement carbon pricing and address market and government failures—policies promoting renewable-based power generation, high efficiency standards, relevant R&D investment, and financial devices that lower the risk-weighted capital costs of low-carbon technologies. Although carbon taxes can raise revenues that can be used to increase green growth, low-income countries might need to start pricing carbon at low and gradually increasing levels to protect people particularly vulnerable to initial price increases.

The report explicitly acknowledges that challenge, suggesting that “The revenue can be used to foster growth in an equitable way, by returning the revenue as household rebates, supporting poorer sections of the population, managing transitional changes, investing in low-carbon infrastructure, and fostering technological change.”

The report highlights the difference between a carbon tax and an emissions trading system (ETS), which in the European Union has resulted in few, if any, carbon emissions reductions due to a far-too-high emissions cap, resulting in an oversupply of emissions permits that have kept carbon prices low. A carbon tax is administratively far less complex than an ETS. Although any particular carbon tax level could result in a higher- or lower-than-desired emissions reductions, it can be adjusted to achieve desired reductions, especially if it levied in an administratively efficient way, which in the energy sector would involve an “upstream” levy on bulk coal, oil, or gas.

Study Refutes EPA Head’s Claim of a “Leveling Off” of Global Warming

A new study in the journal Nature Scientific Reportsdirectly refutes the claim made by Environmental Protection Agency (EPA) Administrator Scott Pruitt during his Senate confirmation hearing that satellite data show a “leveling off” of global warming.

“Mr. Pruitt claimed that ‘over the past two decades satellite data indicates there has been a leveling off of warming.’ We test this claim here,” wrote Benjamin Santer and three of his Lawrence Livermore National Laboratory colleagues, along with scientists from the Massachusetts Institute of Technology, the University of Washington in Seattle, and science research company Remote Sensing Systems.

After comparing all possible 20-year periods of satellite records to larger trends in the climate system, the paper concludes Pruitt was wrong (subscription). It also points to multiple peer-reviewed studies that have undercut the theory of a “pause” in global warming between 1998 and 2012 and that have shown increased evidence of a “human fingerprint” on climate.

“In my opinion, when incorrect science is elevated to the level of formal congressional testimony and makes its way into the official congressional record, climate scientists have some responsibility to test specific claims that were made, determine whether those claims are correct or not, and publish their results,” Santer told the Washington Post.

He emphasized the importance of continuing scientific research into climate change, telling ThinkProgress that the budget that covers the Lawrence Livermore National Laboratory, where his work is housed, faces a proposed 70 percent cut in the budget released last week by the White House.

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Meet the Author

Tim Profeta is the founding director of the Nicholas Institute for Environmental Policy Solutions. The Nicholas Institute is part of Duke University and focuses on improving environmental policy making worldwide through objective, fact-based research in the areas of climate change, the economics of limiting carbon pollution, oceans governance and coastal management, emerging environmental markets and freshwater concerns at home and abroad. In his role at the Nicholas Institute, Profeta has continued to use his experience on Capitol Hill to engage in climate change debates. His research has focused, specifically, on market-based approaches to environmental regulations—particularly energy and climate change policy. Other projects engage his expertise in environmental law and air pollution regulation under the Clean Air Act.

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